| October 30, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
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John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
U.S. Treasury Secretary Janet Yellen highlighted the rise in fraud across the banking sector, noting it has become a significant, widespread issue, Bloomberg reported. Speaking at an American Bankers Association event, Yellen mentioned an increase in fraud involving government checks and emphasized that the Treasury Department is leveraging artificial intelligence to improve fraud detection and response, which has significantly enhanced their efforts.
The Monetary Authority of Singapore (MAS) has launched the Global Finance & Technology Network (GFTN) to reinforce Singapore's position as a global FinTech leader and enhance international collaboration in financial innovation. Building on the initial phase of FinTech growth focused on experimentation and regulatory sandboxes, GFTN aims to deepen collaboration in key areas like payments, asset tokenization, AI, and quantum technologies. The network also intends to scale the Singapore FinTech Festival (SFF) as a premier global FinTech event. Ravi Menon, former MAS Managing Director, will chair GFTN's Board, while Sopnendu Mohanty, MAS's outgoing Chief FinTech Officer, will become GFTN's Group CEO. Kenneth Gay, currently Executive Director at MAS, will assume the Chief FinTech Officer role in early 2025.
Google may have deep pockets, but a Russian court has gone way overboard with its fine to the technology giant "for blocking pro-Kremlin media outlets," The Telegraph reported. The Telegraph said, "Judges in Moscow are seeking around $20 decillion from the technology giant, many times the estimated $100-trillion size of the global economy." The impact of this fine can be summed up in Google's statement about these astronomical sums in its last earnings statement, "We do not believe these ongoing legal matters will have a material adverse effect."
The most actively traded stock yesterday was DJT, the Trump Media & Technology Group Corp., which was up 8.76% and almost up 252% over the last 52 weeks, according to Yahoo Finance. The New York Post reports that the company that operates the Truth Social platform is now worth more than the latest valuation of X, privately owned by Elon Musk. Meanwhile, Chinese investors are buying shares of Wisest Co., "whose Chinese name "Chuan Da Zhi Sheng" sounds like "Trump wins big" to Mandarin speakers," Bloomberg reported.
Florida recently passed a law intended to facilitate investment in the state, but due to a drafting error, it unintentionally barred major banks from selling securities there, The Wall Street Journal reported. The law, effective October 1, 2024, aimed to prevent criminal actors from exploiting investors, yet inadvertently restricted any bank with past regulatory infractions from offering certain securities, impacting large institutions like JPMorgan and Bank of America. After banks flagged the issue, the state used emergency powers related to recent hurricanes to temporarily suspend the restriction. Banks have since resumed operations, and a legislative fix is anticipated.
We have a new host subbing for Ronan Ryan and John Ramsay for the IEX podcast. In a recent episode of Boxes and Lines, Jayme Abrahamsen from IEX interviews Patrice Hayden Meagher, founder and CEO of MilkMate, about enhancing workplace support for nursing mothers. They explore how male-dominated fields, like finance, can improve conditions for new moms through supportive policies and facilities for pumping, aiming to create a more inclusive environment for early motherhood.
Stephen Bush of the Financial Times has a review of Malcolm Gladwell's "Revenge of the Tipping Point," which I will be listening to starting tomorrow on my way back to Chicago.
Here are the headlines from in front of FOW's paywall from some recent stories: ANALYSIS: CME's clearing broker approval renews focus on US rules, HKEX plans Riyadh office next year to boost Middle East ties, EXCLUSIVE: Clear Street secures regulatory approval for UK launch, Trade body criticises CME futures commission merchant approval.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories from our previous edition of JLN Options were:
- US interest rate options price in Republican sweep, jump in volatility from Reuters.
- FIA statement on CME's FCM license from FIA.
- Aquis Exchange and Cboe Europe to Launch SimpliCT to Explore Bid for EU Equities Consolidated Tape from Cboe. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Traders Banned From Watching World Series Amid Ohtani Craze
Takahiko Hyuga - Bloomberg
As an estimated 12% of Japan's population tunes in to watch baseball superstar Shohei Ohtani's first World Series, one group is missing out: traders in Tokyo who can't view the games on their mobiles or on TV. On the trading floor of Deutsche Bank AG in central Tokyo, the TVs are fixed on financial news channels, according to an employee at the German lender. Traders also can't access their mobile phones while they're in the dealing room, leaving them with almost no way to watch the baseball championship in real time.
/jlne.ws/3UrVZ9u
****** Blasphemy! How do you expect male traders to replenish their testosterone if they can't watch the World Series?~JJL
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Russian court fines Google $20,000,000,000,000,000,000,000,000,000,000,000; Don't hold your breath Putin
Iain Thomson - The Register
A Russian court has ruled that Google owes Russian media stations around $20 decillion in fines for blocking their content, and the fines could get bigger. To put that into perspective, the World Bank estimates global GDP as around $100 trillion, which is peanuts compared to the prospective fine. Google might be one of the most valuable businesses on the planet, but even if Sundar Pichai rummages around the back of the sofa he won't be able to raise the funds to pay the penalty.
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***** The comic strip XKCD kinda puts this in perspective. They use a bigger number but close enough, I think, to get the point across how ridiculous this is. ~JB
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In Red/Blue America, Hard Lessons About the Color of Money
Saijel Kishan - Bloomberg
For two financial advisers just 15 minutes away from each other in South Carolina, betting on blue and red America seemed like a surefire way to make money. In the thick of the culture wars, with companies taking stances on guns and abortion, equality and climate change, Jason Britton and Adam Curran both got the same idea: investment funds tailored to people's politics. Britton, 47, went after Democrats, launching his exchange-traded fund during the last presidential election to invest in the S&P 500 "without the GOP." He named his ETF: Democratic Large Cap Core (ticker: DEMZ). Curran, 41, followed two years later with a fund for "god-fearing, flag-waving conservatives" seeking to avoid "woke" companies. His ETF: God Bless America (ticker with a nod to the South: YALL).
/jlne.ws/4e66u9M
****** Mr. Market does not care about politics.~JJL
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Tuesday's Top Three
Our top story Tuesday was Aquis Exchange and Cboe Europe to Launch SimpliCT to Explore Bid for EU Equities Consolidated Tape, from Cboe Global Markets. Second was The 14 Best Wine Openers, According to Sommeliers and Restaurateurs, from The Wall Street Journal. Third was MIAX's post on LinkedIn announcing that its newest options exchange, MIAX Sapphire, officially crossed the 1 million contract milestone.
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| Lead Stories | CME Wins Futures Commission Merchant Approval, Sparking Backlash
Katherine Doherty - Bloomberg
CME Group Inc. won approval to operate its own futures commission merchant, a move that received swift criticism from some market participants. The Chicago-based exchange operator said it received approval from the National Futures Association to establish an FCM, according to a statement Tuesday. While CME says it remains "committed" to the FCM model, which is responsible for accepting orders to buy or sell futures contracts, options on futures and money to complete customer orders, there is potential for change. "As our industry continues to evolve, our FCM will ensure CME Group is in a strong position to quickly adapt to our clients' changing business needs," Chief Executive Officer Terry Duffy said in the statement.
/jlne.ws/3Ut8uBZ
Super Typhoon Kong-Rey Threatens Another Halt of Taiwan Exchange
Mary Hui and Cindy Wang - Bloomberg
The most powerful typhoon in almost six decades threatening to barrel across Taiwan this late in the year has raised the prospect of another suspension of the island's $2.5 trillion stock exchange by a storm. Super Typhoon Kong-Rey has intensified as it skirts the Philippines and tracks toward Taiwan, where it's expected to make landfall on Thursday afternoon. The storm has maximum sustained winds of 125 knots (232 kilometers) per hour, according to the US Navy's Joint Typhoon Warning Center.
/jlne.ws/3NIpTCT
Trader's $10,000 Spoofing Profit Haunts Nomura; Clients have dumped Nomura from underwriting corporate bonds.
Takashi Nakamichi, Takahiko Hyuga, and Donal Griffin - Bloomberg
At 8:45 am on a spring day in 2021, a Nomura Holdings Inc. trader began a series of complex transactions over five hours on the Osaka Exchange that would earn Japan's largest securities firm next to nothing but cost it dearly. Using a tactic called layering, a version of spoofing, the trader offered to sell derivatives linked to more than a billion dollars worth of Japanese government bonds only to subsequently cancel the positions. As rivals cut their own prices in response, the trader snapped up the cheaper contracts and then resold them.
/jlne.ws/4hrssqr
FIA statement on CME's FCM license
FIA
FIA president and CEO Walt Lukken made the following statement today regarding the approval of CME's futures commission merchant (FCM) license. "The approval of CME's FCM application is the latest and most significant example of a trend that raises serious concerns about market regulation and systemic risk. The approval comes at a time when the CFTC has yet to propose a strong rule to address conflicts among affiliated CFTC-regulated entities. "Nearly three years ago, FTX sought CFTC approval for a vertically integrated business model. FIA warned the CFTC at that time that such a novel structure would raise concerns about conflicts of interest from combining multiple market functions under one roof. Three years later, these risks remain unaddressed. "We strongly believe inherent conflicts of interest exist when one organization controls multiple market functions - trading, clearing, intermediation and market regulation. FIA urges the CFTC to move forward immediately on a rulemaking to address this matter."
/jlne.ws/40ndkUU
CME Group's approval to establish futures commission merchant sparks backlash from FIA
Wesley Bray - The Trade
Derivatives marketplace CME Group has received approval from the National Futures Association (NFA) to establish a futures commission merchant (FCM). Walt Lukken, FIA The NFA defines a FCM as an entity that solicits or accepts orders to buy or sell futures contracts, options on futures, retail off-exchange forex contracts or swaps, and accepts money or other assets from customers to support such orders.
/jlne.ws/4fm3RBC
Everyone hates the SEC's bank bail-in take; FinReg FUBAR
Robin Wigglesworth - Financial Times
A year ago FT Alphaville wrote about the Financial Stability Board's Credit Suisse postmortem, and its almost-casual observation that the SEC believed the entire post-GFC global bank bail-in bonds regime might fall foul of US securities law. In the US the conversion of debt into equity counts as a new sale of securities, and therefore requires full registration - with new disclosures etc - or a regulatory exemption. Astonishingly, it appears the SEC feels that even bonds expressly designed to fit regulatory requirements by being convertible into equity are not exempt.
/jlne.ws/48whZGm
FX association calls out proposed FX Global Code revisions for 'complexity and lack of clarity'; The Foreign Exchange Professionals Association (FXPA) labelled the updates "well-intentioned but flawed", namely due to the overly complicated language used in the proposals and the lack of practical detail.
Wesley Bray - The Trade
Following proposed updates to the FX Global Code, the FXPA has highlighted that the revised rules could unintentionally lead to new risks, whilst also complicating operations, without clear benefits for the market. The FX Global Code are a set of industry guidelines aimed at keeping global currency markets fair and transparent. The Global Foreign Exchange Committee (GFXC), responsible for maintaining standards in the global FX market, has proposed changes to its FX Global Code, which was established to provide guidance on how currency trades are carried out globally, with the goal of encouraging integrity and transparency.
/jlne.ws/3Aajygq
Malaysian Ringgit Set for Biggest Monthly Decline Since 2015; Currency has gone from top Asia performer to one of the worst; A Harris win in the US election will boost ringgit: OCBC, MUFG
Karl Lester M Yap - Bloomberg
Malaysia's currency is on course for its worst month in more than nine years, as investors scale back on risk assets amid concerns over the US election. The ringgit is down more than 6% against the dollar in October, putting it on pace for its biggest monthly loss since August 2015. The ringgit traded at 4.39 per dollar on Wednesday. The renewed strength in the dollar is battering Asian currencies, almost all of which have come under heavy pressure in October as traders reassess the pace of Federal Reserve interest-rate cuts and avoid risky assets in the run-up to the US election.
/jlne.ws/3UxFRDx
New Chinese Index's ETFs Attract Inflows as Funds Leave CSI 300; A500 is a full sector benchmark with ESG as one of the factors; Group of 10 ETFs has taken in about $4.2 billion this month
Bloomberg News
A cohort of exchange-traded funds tracking China's new A500 index has seen strong inflows in the two weeks since their launch, showing continued momentum for interest in the new benchmark. The group of 10 ETFs has gotten around 30 billion yuan ($4.2 billion) of inflows since trading started this month, sending their combined size to 52 billion yuan. That's more than twice the amount raised at their inception, with one overseen by Guotai Asset Management growing by more than six times.
/jlne.ws/3YMf08j
Thailand's $4.5 Billion Fund Is Buying Stocks, Eyes Derivatives; Vayupak Fund I is part of an effort to boost confidence; The fund is gradually shifting from bonds to equities
Eduard Gismatullin and Sarah Wells - Bloomberg
Thailand's recently-launched $4.5 billion state-controlled investment fund has already started buying shares and is considering equity derivatives to protect its capital, according to one of its co-investment managers. Vayupak Fund I, which raised money from around 50,000 Thai investors last month, will "gradually" invest about 90% of its assets in local equities, said Chavinda Hanratanakool, the chief executive officer of Krung Thai Asset Management Pcl. She is considering expanding the team to boost its expertise in equity derivatives, which the fund will use in the future if it decides the downside risks are too high, she said in an interview in Bangkok.
/jlne.ws/3YHSiiw
Wall Street Giants to Make $50 Billion Bet on AI and Power Projects; KKR and Energy Capital Partners are targeting near-term power-generation projects to support AI development
Katherine Blunt - The Wall Street Journal
KKR and Energy Capital Partners have agreed to invest a combined $50 billion in data-center and power-generation projects to support the development of artificial intelligence. The investment is a bet on AI's huge energy needs and the mounting stress it is putting on the U.S. power grid. Much of it will be invested over the next four years, the companies said.
/jlne.ws/3YHMbe2
Indonesia Names Ex-Minister as Suspect in Sugar Corruption Case; Thomas Lembong was a strong critic of Joko Widodo's government; Ex-trade minister was strongly against downstreaming policy
Prima Wirayani and Claire Jiao - Bloomberg
Former Indonesian Trade Minister Thomas Lembong, a strong critic of the government, has been named a suspect in a corruption case involving sugar imports back in 2015, a move that some say may be politically motivated. The Attorney General's Office alleges Lembong of breaching rules for granting import permits for 105,000 tons of raw sugar to privately-owned PT AP, at a time when the country was in surplus of production, said Abdul Qohar, the director for special crimes investigation, in a press briefing on Tuesday evening. He also cited a 2004 ministerial regulations restricting certain sugar imports to state-owned companies.
/jlne.ws/3Yr1pCX
EU should spend 20% of budget on security and climate disasters, report says; Finland's former president reports on cost of Europe's preparedness for multiple crises
Laura Dubois - Financial Times
The EU should spend a fifth of its common budget on security and crisis preparedness as it enters a period of increased risk from geopolitical tensions and climate change, Finland's former president warned in a landmark report on the bloc's defence. Brussels had tasked Sauli Niinistö earlier this year with assessing the EU's security needs following Russia's war against Ukraine, Moscow's hybrid threats and intensifying natural disasters.
/jlne.ws/48tSPIr
Investors' 'fear of missing out' drives gold demand to record high; Buyers clamour for gold-backed ETFs as central banks scale back purchases of the precious metal
Leslie Hook - Financial Times
Investors' "fear of missing out" on gold's rally has sparked record demand for the precious metal, even as high prices push central banks to scale back their purchases. The value of global demand passed $100bn for the first time in the third quarter of this year, according to industry body the World Gold Council, driven mainly by investor buying. The volume of global gold demand also rose to a record in the same period, up 5 per cent to 1,313 tonnes.
/jlne.ws/40qjMuC
EXCLUSIVE: Clear Street secures regulatory approval for UK launch
Luke Jeffs - FOW
Clear Street, the new US broker aiming to shake-up futures clearing, has secured approval to launch in the UK, marking a major milestone for the firm's global ambitions. Clear Street was approved on October 17 by the Financial Conduct Authority to "hold and control client money", according to the UK regulator's register. New York-based Clear Street has named in its filing Jacinda Fahey, formerly a chief operating officer in prime brokerage at Deutsche Bank, as chief executive and executive director while Chris Pento, chief executive and president of Clear Street, is the UK arm's chair of the governing body. Carlos Fernandez, who was most recently chief financial officer at ED&F Man Capital Markets, is Clear Street UK's executive director, according to the UK regulator's register. A spokesman for Clear Street declined to comment on the FCA approval.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Finland's president calls North Korea's dispatch of troops to Russia an escalation
Associated Press
Finland's president said North Korea's dispatch of troops to Russia represents an escalation of the Russia-Ukraine war that goes against China's own stated position on the conflict, following talks Tuesday with the Chinese president. Finnish President Alexander Stubb made his comments after meeting for more than three hours with China's President Xi Jinping in Beijing in a visit to discuss the war as well as trade and other issues. Chinese officials did not comment on specifics, but Chinese state media said the two sides had an in-depth exchange.
/jlne.ws/3YJztf5
Zelenskiy Arrives in Iceland to Meet With Nordic Leaders
Kateryna Chursina - Bloomberg
Ukrainian President Volodymyr Zelenskiy traveled to Iceland on Monday for a meeting with Nordic leaders as he seeks to secure support for the country's war aims. Zelenskiy will also hold meetings with prime ministers of Denmark, Norway, Finland and Sweden as he touts Ukraine's efforts for peace, including the so-called victory plan, according to statement on his Telegram.
/jlne.ws/4hq925i
Ukraine and Russia in talks about halting strikes on energy plants; Qatar-mediated discussions mark resumption of previous efforts abandoned after Kyiv's invasion of Kursk region
Max Seddon, Christopher Miller and Andrew England - Financial Times
Ukraine and Russia are in preliminary discussions about halting strikes on each other's energy infrastructure, according to people familiar with the matter. Kyiv was seeking to resume Qatar-mediated negotiations that came close to agreement in August before being derailed by Ukraine's invasion of Kursk, said the people, who included senior Ukrainian officials.
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | US calls on Israel to tackle 'catastrophic humanitarian crisis' in Gaza; Failure to help improve the situation on the ground could be met by restrictions on US military aid
Patrick Wintour and Andrew Roth - The Guardian
Israel is not addressing the "catastrophic humanitarian crisis" in Gaza, the US envoy to the United Nations has said as a deadline imposed by Washington looms for the Israelis to improve the situation or face potential restrictions on military aid. "Israel's words must be matched by action on the ground," Linda Thomas-Greenfield told the security council. "Right now, that is not happening. This must change - immediately."
/jlne.ws/3C66DN7
US calls deadly Israeli air strike 'horrifying'
Gabriela Pomeroy - BBC News
At least 93 people are dead or missing after an Israeli air strike on the town of Beit Lahia in northern Gaza, the Hamas-run health ministry says, in an attack that the United States called "horrifying". Rescuers said a five-storey residential building was hit, and videos on social media showed bodies covered in blankets on the floor. The Israeli military said it was "aware of reports that civilians were harmed today [Tuesday] in the Beit Lahia area". It added that the details of the incident were being looked into.
/jlne.ws/3AmcBc6
US envoys pursue drive to stop Israel-Hizbollah war in Lebanon; IDF ground offensive continues while diplomats struggle to formulate peace plan
Neri Zilber, Raya Jalabi and Andrew England - Financial Times
Senior US envoys are due to arrive in the Middle East on Thursday to pursue a diplomatic drive to end the war between Israel and the Lebanese militant group Hizbollah, following a security cabinet meeting on the issue held by Benjamin Netanyahu. The Israeli prime minister convened his top ministers on Tuesday night to update them "on the diplomatic front relating to Lebanon", according to a person familiar with the matter, although the person cautioned that there was not an "actionable or imminent deal yet".
/jlne.ws/3YJ0yim
How the Houthis Went From Ragtag Rebels to Global Threat; The Gaza war has allowed the Iran-backed Yemeni militants to broaden alliances with Iraqi militias, African jihadists and Russia
Benoit Faucon and Warren P. Strobel - The Wall Street Journal
Iran's "axis of resistance" has suffered a series of blows delivered by Israel over the past month, including operations targeting the leadership of Hamas in Gaza and Hezbollah, and a strike last week on Iran's missile-making facilities used, in part, to supply the groups. That hasn't stopped Yemen's Houthis from targeting more ships this week in the Red Sea with drones and missiles, the latest demonstration of how an escalating regional war appears to be boosting a once minor Iran-backed player in the region.
/jlne.ws/3AiFi9P
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | HKEX to Open Office in Riyadh to Expand Middle East Presence
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Wednesday) that it plans to open an office in Riyadh in 2025. The new office will strengthen HKEX's Middle East presence as the Group looks to promote greater connectivity between China and the Gulf region, aiming to facilitate new opportunities for its customers and issuers around the world. Situated in Saudi Arabia's economic powerhouse and a leading financial hub in the region, the new Riyadh office will enable HKEX to better connect with investors and companies in one of the world's most dynamic and innovative economic hubs, providing on-the-ground support to help them access Hong Kong's broad and diverse financial products ecosystem, as well as to capture the opportunities arising from megatrends that define Asia's growth story.
/jlne.ws/3NOhn5j
27four Debuts Third AMETF on the JSE
JSE
Trading under the alpha code 27FGMF, the AMETF will invest in financially sound shares across global sectors, focusing on a portfolio of the top 150-200 counters based on market capitalisation. Its objective is to outperform the MSCI World Price Index. This fund seeks to achieve long-term capital growth over time, providing investors with diversified exposure to liquid offshore companies listed across global exchanges.
/jlne.ws/3Yu23j2
Production/New Release OTC IRS Advisory - MXN F-TIIE OIS Curve Inputs - Effective October 30, 2024
CME Group
Per continuing efforts to support prudent risk management for interest rates swaps ("IRS") products, CME Clearing will be incorporating the following changes to MXN TIIE de Fondeo (F-TIIE) 1D Curve.
/jlne.ws/48tRHV4
Listing of Warehouse
LME
Further to Notice 24/218, please note that the under-mentioned warehouse is to be listed with effect from 30 January 2025.
/jlne.ws/3C1b6AG
LSEG Risk Intelligence unveils two new verification solutions to combat advanced fraud techniques globally
LSEG
LSEG Risk Intelligence, a leader in compliance, risk management and fraud prevention solutions, has announced the launch of two innovative products designed to enhance financial security and drive operational efficiencies on a global scale.
/jlne.ws/4f32KXO
The Fourth Round of the Sparks IPO Academy Launched!; The Sparks IPO Academy, an educational program aimed at preparing business leaders for potential IPOs on the Sparks standard of SIX Swiss Exchange, launched its fourth round on October 15.
SIX
This year's class includes 13 high-potential companies at different development stages, including scale ups as well as more established companies, and from diverse sectors such as life sciences, cleantech, finance, industrial and ICT. The Sparks IPO Academy has a hybrid format, allowing business leaders to balance the educational programme with their busy work schedules. The next sessions will be held virtually every 2-3 weeks, followed by an investors' roundtable event in February, where companies can exchange and connect with selected investors in speed dating sessions. The Sparks IPO Academy will wrap up for the year with a two-day closing event in Solothurn in May 2025.
/jlne.ws/40rbqCY
Tradeweb Reports Third Quarter 2024 Financial Results
Tradeweb
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported financial results for the quarter ended September 30, 2024.
/jlne.ws/3NJYpN1
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | The AI boom may unleash a global surge in electronic waste; Most e-waste is never recycled. Data center upgrades for AI projects could significantly add to the problem, researchers say.
Gerrit De Vynck - The Washington Post
The Silicon Valley arms race to build more powerful artificial intelligence programs could lead to a massive increase in electronic waste, research published Monday warns. Leading tech companies are spending heavily to build and upgrade data centers to power generative AI projects and to stock them with powerful computer chips. If the AI boom continues, the older chips and equipment could amount to extra electronic waste equivalent to throwing out 13 billion iPhones annually by 2030, the study from academics in China and Israel said.
/jlne.ws/4e4SvRA
OpenAI, Broadcom Working to Develop AI Inference Chip
Ed Ludlow, Rachel Metz and Ian King - Bloomberg
OpenAI is working with Broadcom Inc. to develop a new artificial intelligence chip specifically focused on running AI models after they've been trained, according to two people familiar with the matter. The AI startup and chipmaker are also consulting with Taiwan Semiconductor Manufacturing Co., the world's largest chip contract manufacturer, said the people, who asked not to be identified because the discussions are private. OpenAI has been planning a custom chip and working on such uses for the technology for around a year, the people said, but the discussions are still at an early stage.
/jlne.ws/3Ah25ms
How Arm could be the unexpected winner of the AI investment boom; Shares in the British chip designer, which is controlled by SoftBank, have trebled in price over the past year. But its ambitions go much further
Tim Bradshaw and David Keohane - Financial Times
Almost 20 years ago, Intel made a decision that changed the course of computing history. Soon after Apple started putting Intel inside its Mac computers in 2005, Steve Jobs pitched the chipmaker's then chief executive, Paul Otellini, on its top-secret plan to break into the mobile phone business. Intel turned down Jobs - and what would become the iPhone. One result of Intel's decision was to hand UK-based tech group Arm an effective monopoly on the chip designs that now power virtually every mobile phone, a $500bn market that is more than twice the size of the PC industry.
/jlne.ws/40qjhRg
Alphabet's Pricey AI Bet Pays Off With Cloud, Search Growth
Julia Love and Curtis Heinzl - Bloomberg
Google parent Alphabet Inc. is showing an expensive foray into artificial intelligence is starting to pay off, delivering better-than-expected sales for its cloud-computing business and driving more usage of its flagship search engine. Revenue, excluding partner payouts, jumped 16% to $74.6 billion from a year ago, the company said in a statement Tuesday, surpassing analysts' estimates. Third-quarter net income of $2.12 also far exceeded projections.
/jlne.ws/4f2ROJL
The cautionary tale of Goldman and Apple's credit card; Retail banking is not only harder than it looks but also heavily regulated by watchdogs who take their duties very seriously
Brooke Masters - Financial Times
To think it all started out so well. When Goldman Sachs and Apple teamed up to launch a credit card in 2019, neither the storied investment bank nor the technology giant had much experience with consumer banking. That did not stop them from dreaming big. They promised to offer "an innovative, new kind of credit card" with no fees and a cutting edge app "designed to help customers lead a healthier financial life."
/jlne.ws/40qmwYL
Elon Musk's xAI in Talks to Raise Funding Valuing It at $40 Billion; New fundraising effort would substantially increase startup's valuation from spring
Berber Jin and Meghan Bobrowsky - The Wall Street Journal
Elon Musk's xAI is in talks with investors for a funding round that would value it around $40 billion, according to people familiar with the matter, escalating the tech industry's race to build advanced generative AI technology. The startup was last valued at $24 billion just a few months ago, when it raised $6 billion in the spring.
/jlne.ws/40p4Yfp
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| Cybersecurity | | Top stories for cybersecurity | Hackers Posing As IT Support On Teams? New Ransomware Scam Targeting Your Workplace
Lars Daniel - Forbes
The Black Basta ransomware group has begun targeting internal platforms like Microsoft Teams to exploit employees' trust in their own organization's communication channels. By impersonating IT support on these trusted platforms, Black Basta is bypassing traditional external security measures and leveraging employee trust to gain access to networks.
/jlne.ws/3YsYU2T
CFOs' Increasing Role In Cybersecurity To Safeguard Payment Processes
Shai Gabay - Forbes
The role of chief financial officers (CFOs) has undergone a dramatic transformation in recent years due to the increasing financial impact of cyber threats: evolving regulatory compliance, the widespread adoption of remote work, bring-your-own-device (BYOD) policies and the growing integration of AI in business operations, to name a few.
/jlne.ws/3YpAzuY
Cybersecurity for Critical Infrastructure Update - Incident Response Improves, Industry Standards Evolve
Romaine Marshall, Mary Ann Quinn and Caitlin Smith - JD Supra
Critical infrastructure facilities are increasingly vulnerable to cybersecurity events, as demonstrated by the number of cyberattacks that have occurred this year against utilities including those in the energy sector (electricity, oil and natural gas, renewables), and water and wastewater systems sector (among some of the 16 sectors deemed 'critical').
/jlne.ws/3YF3dJT
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| Cryptocurrencies | | Top stories for cryptocurrencies | US Bitcoin ETFs Get Third-Highest Inflow With Token Near Record
Sidhartha Shukla - Bloomberg
US exchange-traded funds investing in Bitcoin saw an $870 million net inflow, their third-highest daily haul, as the digital asset flirts with a record high amid speculation about the potential outcome of the US election. The subscriptions on Tuesday lifted year-to-date inflows for the group of 12 funds to more than $23 billion, according to data compiled by Bloomberg. The issuers of the ETFs include the likes of BlackRock Inc. and Fidelity Investments.
/jlne.ws/3NL0JU3
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| Politics | | An overview of politics as it relates to the financial markets | Goldman Says Traders Are Too Worried About Delays to US Vote Result
Carter Johnson - Bloomberg
Goldman Sachs Group Inc. said global investors are overstating the risk that financial markets will be plunged into uncertainty by the lack of a clear victor soon after next week's US presidential election. "While we recognize the tail risk possibilities, we think market participants appear to be somewhat overestimating the probability that a delayed result will prevent financial markets from reflecting the likely election outcome on election night or early the next morning," Goldman's Michael Cahill, Lexi Kanter and Alec Phillips wrote in a note Tuesday.
/jlne.ws/3YHFt7Q
The Trump Trade: Why Wall Street Is Betting on a Trump Win
David Gura and David Fox - Bloomberg
With the US presidential election just over a week away, most major polls, including the latest Bloomberg/Morning Consult poll, show Vice President Harris and former President Trump in a dead heat. But Wall Street seems increasingly convinced Trump is going to win. And that is manifesting in what's come to be called "The Trump Trade."Today on the Big Take podcast, Bloomberg Opinion's John Authers sits down with host David Gura to break down what the trade is, and what it reveals about how Wall Street sees this election and the future of the economy.
/jlne.ws/4hnWnjj
'Trump Wins Big' Meme Stock Surges in China Ahead of US Election
Charlotte Yang and Sangmi Cha - Bloomberg
Chinese investors are jumping into a little-known stock whose name sounds like "Trump wins big" less than a week before the US presidential election. Shares of Wisesoft Co., whose Chinese name "Chuan Da Zhi Sheng" sounds like "Trump wins big" to Mandarin speakers, surged by the daily limit for a third day, bringing gains this week to more than 30% despite weakness in the broader market. The stock rallied after Trump won the election in 2016.
/jlne.ws/3NRNj8F
US LNG export gains at risk if Trump wins election and boosts tariffs, analysts say
Curtis Williams - Reuters
U.S. exporters of liquefied natural gas (LNG) could face new hurdles if Republican Donald Trump wins the presidential election because of a proposed 60% tariff on imports from China, despite the former president's pledge to speed new energy permits, say analysts. The U.S. became the world's largest exporter of the super-chilled gas last year, generating tens of billions of dollars in annual trade. Exports will average 12.1 billion cubic feet per day this year, almost double their level four years ago, according to U.S. government estimates.
/jlne.ws/3YpVpKD
US economy seen shining on election eve amid robust consumer spending
Lucia Mutikani - Reuters
The U.S. economy likely maintained a solid pace of growth in the third quarter as subsiding inflation and strong wage gains powered consumer spending ahead of a contentious presidential election set to turn on pocketbook issues. The Commerce Department's advance estimate of third-quarter gross domestic product on Wednesday will be published less than a week before Americans head to the polls on Nov. 5 to choose between Vice President Kamala Harris, the Democratic Party candidate, and former President Donald Trump. Polls show the race is a toss-up.
/jlne.ws/40uFKN3
Trump Treasury Contender Pledges to Work With Musk to Slash Spending; Investor John Paulson, a Trump ally, says he would also work on trade and energy if he became Treasury secretary
Brian Schwartz - The Wall Street Journal
Billionaire investor John Paulson says he would work with Tesla Chief Executive Elon Musk to enact massive federal spending cuts if Paulson were to become Treasury secretary in a second Trump administration. Paulson, an ally of the former president, said in an interview that his priority would be extending Donald Trump's expiring 2017 tax cuts, followed by "working with Musk to reduce federal spending," particularly by getting rid of the subsidies for green energy in the Inflation Reduction Act, which he referred to as the Green New Deal.
/jlne.ws/3AanGNs
A Harris Presidency Is the Only Way to Stay Ahead of A.I.
Thomas L. Friedman - The New York Times
There are many reasons I was deeply disappointed that The Washington Post's owner, Jeff Bezos, chose to kill his newspaper's editorial endorsing Kamala Harris for president, but none more than the fact that Bezos loves science. And this election coincides with one of the greatest scientific turning points in human history: the birth of artificial general intelligence, or A.G.I., which is likely to emerge in the next four years and will require our next president to pull together a global coalition to productively, safely and compatibly govern computers that will soon have minds of their own superior to our own.
/jlne.ws/4hENbr9
Russia carries out test for 'massive' nuclear strike on West
James Kilner - The Telegraph
Russia has test-fired nuclear missiles from land, sea and air as it simulated a "massive" response to an attack from the West. Vladimir Putin also warned that Russia would respond to any attack with "overwhelming" nuclear firepower as this was its "ultimate" security. "Taking into account growing geopolitical tensions and emerging new threats and risks, it's important for us to have modern strategic forces that are always ready for combat," the president said.
/jlne.ws/4fryxBB
US Efforts to Contain Xi's Push for Tech Supremacy Are Faltering; The world outside the US is increasingly driving Chinese electric vehicles, scrolling the web on Chinese smartphones and powering their homes with Chinese solar panels.
Bloomberg News
/jlne.ws/4f3Ci0a
Erdogan says Turkey aims to have "Steel Dome" air defence system
Reuters
/jlne.ws/4fkSY2S
Norway Invites Citizens to Tackle Questions Around Oil Wealth
Kari Lundgren - Bloomberg
/jlne.ws/3UxEnZZ
What the US election outcome means for Ukraine, Gaza and world conflict
Lyse Doucet, Chief international correspondent - BBC
/jlne.ws/3YJ0FdM
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| Regulation & Enforcement | | Stories about regulation and the law. | Canadian Couple Committed Fraud at Private Lender Bridging, Regulator Says; David, Natasha Sharpe misdirected millions in investor money; Ontario tribunal also found that David intimidated witnesses
Melissa Shin - Bloomberg
The husband-and-wife team who ran Toronto private lender Bridging Finance Inc. committed fraud, took kickbacks and tried to mislead investigators about it, Canada's top securities regulator has ruled. Ontario's Capital Markets Tribunal found that David Sharpe and Natasha Sharpe, Bridging's former top executives, misdirected millions in investor money for their own benefit. After regulators started probing the firm, David Sharpe then tried to intimidate potential witnesses, the tribunal said in a ruling Tuesday.
/jlne.ws/3C4ny2x
Dubai's DIFC Suspends Firms Said to Be Key to Iran Oil Kingpin; Milavous, Ocean Leonid suspended by Dubai's free zone; Shamkhani says he has no relationship with either entity
Ben Bartenstein - Bloomberg
The Dubai International Financial Centre has suspended multiple companies that people familiar with the matter say are part of a network overseen by Iranian oil trader Hossein Shamkhani. The emirate's finance hub took the actions against Milavous Group Ltd. and Ocean Leonid Investments Ltd. amid mounting pressure from international regulators, said the people, who requested anonymity as the information isn't public. Both firms appeared in recent days in the registry of the DIFC free zone as "inactive - suspended." The registry doesn't reflect the start date for the suspensions.
/jlne.ws/40oyX7e
NFA orders New York, N.Y. commodity pool operator AC Investment Management, LLC to pay a $100,000 fine
NFA
October 29, Chicago--NFA has ordered AC Investment Management, LLC (ACIM), an NFA Member commodity pool operator located in New York, N.Y., to pay a $100,000 fine. The Decision, issued by an NFA Hearing Panel, is based on a Complaint issued by NFA's Business Conduct Committee and a settlement offer submitted by ACIM, in which the firm neither admitted nor denied the allegations in the Complaint.
/jlne.ws/3Yu2FFg
SEC Charges Furniture Company and Two Former Executives with Accounting Violations
SEC
The Securities and Exchange Commission announced today that it filed charges against Connecticut-based publicly traded furniture retailer The Lovesac Company, Donna Dellomo, CPA, Lovesac's former CFO, and Yoon Um, CPA, Lovesac's former controller, for accounting violations in connection with expenses Lovesac incurred shipping its furniture to customers. Lovesac has agreed to a settlement to resolve the claims against it by, among other things, paying a civil penalty of $1.5 million.
/jlne.ws/4e33Tgx
ASIC sues Oak Capital alleging unconscionable conduct designed to avoid the National Credit Code
ASIC
ASIC has commenced proceedings against Oak Capital (Oak Capital Mortgage Fund Ltd and Oak Capital Wholesale Fund Pty Ltd) for allegedly engaging in unconscionable conduct to avoid the National Credit Code. ASIC alleges that from 7 March 2019 to 4 October 2023, Oak Capital made up to 47 loans totalling over $37 million under a model designed to avoid the application of the Code and the National Consumer Credit Protection Act 2009.
ASIC suspends three high volume SMSF auditors connected to a SMSF administration provider
ASIC
ASIC has suspended the registration of three self-managed superannuation fund (SMSF) auditors for one year. ASIC determined auditors Wuzhao Fang, Huiting Li, and Xuan Wu breached independence requirements by auditing thousands of SMSF clients from a single referral source, who is a SMSF administration provider. The SMSF administration provider offers online SMSF setup and administration, including assisting the SMSF trustee comply with their tax, accounting and audit obligations.
/jlne.ws/3NLFd1q
ASIC disqualifies NSW director for five years
ASIC
ASIC has disqualified Constandinos Ganatzos, of Brighton-Le-Sands, NSW, from managing corporations for the maximum period of five years due to his involvement in the failure of 21 companies. At the time of ASIC's decision, the 21 companies owed a combined total of $71,144,235 to unsecured creditors, including $21,727,914 owing to the Australian Taxation Office, $1,285,894 owing to the Office of State Revenue and $1,287,138 for workers compensation debt. The list of companies can be found below.
/jlne.ws/3AjlbIy
Consultation: Renewal of class exemption for DIMS licensees from certain financial reporting requirements
FMA
We are reviewing whether to renew for a further five years an existing class exemption notice for certain providers of discretionary investment management services (DIMS) who are licensed to provide DIMS under Part 6 of the Financial Markets Conduct Act 2013 (FMC Act). The exemption provides relief to small and medium-sized DIMS licensees from certain financial reporting and audit requirements required under Part 7 of the FMC Act.
/jlne.ws/3AsfBUb
Rising to the occasion on private markets
FCA
Speech by Nikhil Rathi, FCA Chief Executive, delivered at the Investment Association Annual Dinner, Mansion House.
/jlne.ws/4hEI767
Singapore Publishes National Anti-Money Laundering Strategy
MAS
Singapore today published its National Anti-Money Laundering (AML) Strategy, as part of continuing efforts to maintain the effectiveness of our AML framework. The National AML Strategy[1] outlines our strategic approach to address money laundering (ML) risks, and guides our risk-targeted actions to combat ML amidst rapidly changing risks and criminal typologies. Please refer to this link for a copy of the National AML Strategy.
/jlne.ws/4efv9ZC
MAS Announces Establishment of Global Finance & Technology Network for Next Phase of FinTech Growth
MAS
The Monetary Authority of Singapore (MAS) today announced the establishment of the Global Finance & Technology Network (GFTN) to further strengthen Singapore as a global FinTech hub and enhance global connectivity for impactful innovation in financial services.
/jlne.ws/3NOeKjX
First immediate jail sentence for convicted unlicensed activity with a compensation order
SFC
The Eastern Magistrates' Court today sentenced Ms Lai Ka Yi to two weeks' imprisonment and ordered her to pay a sum of $98,000 as compensation to a victim of her unlicensed activity after she was convicted of holding herself out as carrying on a business in dealing in securities without a licence from the Securities and Futures Commission (SFC). This is the first time the Court has imposed an immediate jail sentence for an unlicensed activity offence under section 114 of the SFO with a compensation order in a prosecution brought by the SFC (Notes 1 and 2). Lai was also ordered to pay the SFC's investigation costs.
/jlne.ws/4f1AMLT
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Google's moneymaking machine still pumping out massive profits despite multiple threats
Michael Liedtke - Associated Press
Google is still thriving while the company navigates through a pivotal shift to artificial intelligence and battles regulators trying to topple its internet empire. The latest evidence of Google's prosperity emerged Tuesday with the release of its corporate parent Alphabet Inc.'s results for the July-September period. Both Alphabet's profit and revenue increased at a brisker pace than industry analysts anticipated, thanks primarily to a moneymaking machine powered by Google's ubiquitous search engine.
/jlne.ws/48wcN5k
TradingBlock unveils customised order-routing algos for traders; "Empowering traders with their own customised order-routing algorithms is especially critical in today's market environment," said Gino Stella, institutional trading manager at TradingBlock.
Claudia Preece - The Trade
TradingBlock has bolstered its offering through the addition of customised order-routing algorithms for traders and asset managers on their platform. Gino Stella, institutional trading manager at TradingBlock, explained: "This new capability gives traders more control as they can tailor their order routing algo to their strategy. They are no longer tied to broadly used, off-the-shelf algorithms."
/jlne.ws/3Yyk682
Bunge's Profit Drops Less Than Expected as Crop Prices Drop
Gerson Freitas Jr and Tarso Veloso - Bloomberg
Bunge Global SA's third-quarter profit dropped less than expected as it navigates a scenario of lower crop prices around the globe. Earnings per share excluding mark-to-market timing differences were $2.29 a share in the three months ended September, down 23% from a year earlier and still the lowest since 2019 for the period, the company said in a statement. That exceeded the $2.14 average of analyst estimates.
/jlne.ws/3Yr02Ej
Rising investor gold demand offsets lower jewellery buying in Q3, says industry body
Polina Devitt - Reuters
Global gold demand excluding over-the-counter (OTC) trading was steady year-on-year at 1,176.5 metric tons in the third quarter as higher investment activity offset reduced jewellery consumption, the World Gold Council (WGC) said on Wednesday. Spot gold prices are up 34% so far this year, heading for the highest annual growth since 1979, due to uncertainty surrounding next week's U.S. presidential election, lower interest rates, geopolitical risks and portfolio diversification. Gold hit a record of $2,771.61 per ounce on Tuesday.
/jlne.ws/3UsZgFI
US election betting is on a roll; In the months leading up to election day, people from around the world have placed millions of dollars in wagers on who will be the next American president
FT Trading Room Podcast
On November 5, voters in the US will head to the polls to decide who should be the next president: Donald Trump or Kamala Harris. But over the past several months, people from around the world have been placing millions of dollars on who will win that race. As interest in betting on US politics reaches a new high, the FT's Oliver Roeder and Sam Learner explain how these markets work and what can (and can't) be learned from them.
/jlne.ws/4eURgFH
Why 'Trump trades' and 'Harris trades' could be just regular stock-market bets; Here's what the S&P 500 sectors are really saying about their presidential election preference
Mark Hulbert - MarketWatch
Wall Street's current narrative is that investors would prefer former U.S. president Donald Trump, the Republican candidate, to win the 2024 presidential election over U.S. Vice President Kamala Harris, the Democratic candidate. The data don't support this. On the contrary, most of the stock market's primary sectors have rallied in those weeks in which Harris's chances of victory have risen. And most have fallen when Trump's chances have gone up. While these results don't prove that Wall Street prefers Harris over Trump - correlation is not causation, after all - they run directly counter to the notion that Wall Street prefers a second Trump presidency.
/jlne.ws/48vdTyg
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Phillips 66 Expects to Surpass Its $3 Billion Asset-Sale Target
David Wethe and Barbara Powell - Bloomberg
Phillips 66, the biggest US fuelmaker by market value, told investors Tuesday it expects to surpass its $3 billion target for asset sales with more dispositions planned. The Houston refiner, which is closing a refinery in 2025 and shedding other investments to address strategic and governance concerns raised by activist Elliott Investment Management, said it has sold about $2.7 billion in assets since 2022.
/jlne.ws/3YGFZDk
Clean Energy Is Booming in the U.S. The Election Could Change That.; Trump has suggested he would dismantle the Inflation Reduction Act, which has reshaped America's energy landscape. It won't be easy.
Brad Plumer - The New York Times
Over the last two years, a surge in clean energy manufacturing has helped push U.S. factory construction to the highest level in half a century. Solar power installations and electric car sales are breaking records. Even Republican-led states like Montana and Utah are writing climate plans to secure federal cash. Yet the law driving this dizzying transformation of America's energy landscape, the 2022 Inflation Reduction Act, is facing a highly uncertain future as next week's election looms.
/jlne.ws/3UtJJFQ
Climate-Fueled Extreme Weather Is Hiking up Car Insurance Rates; Home insurers have raised premiums after extreme weather events. Now car insurers in the U.S. are doing the same thing.
Kiley Price - Inside Climate News
As climate change accelerates, hurricanes, wildfires and hail storms pound the U.S. with growing vigor-and the insurance market is struggling to foot the bill of the damages they leave behind for customers. In 2023 alone, extreme weather cost the U.S. more than $92 billion. And it's not just home insurance providers that are hiking rates.
/jlne.ws/3NIfPtD
Tentative green energy shoots at risk from US vote uncertainty
Danilo Masoni - Reuters
Renewable energy shares, reeling from an investor retreat, face extended uncertainty as the U.S. election has added to wariness, leaving only selected stocks poised to benefit from any boost lower interest rates could provide to funding. The sector achieved bubble-like valuations in 2020-21, as major funds piled in, attracted by falling development costs.
/jlne.ws/3UoxDNR
Vopak Sees Geopolitical Tensions Boosting Demand for Oil Storage
Sarah Jacob and Jack Wittels - Bloomberg
Koninklijke Vopak NV said geopolitics and uncertainty about the future of oil are driving demand to store petroleum, prompting the company to upgrade its annual profit outlook. The firm has seen strong demand for oil storage in Rotterdam, the Middle East and Singapore, with customers keen to renew contracts, even extending them with longer terms, Chief Financial Officer Michiel Gilsing said in an interview.
/jlne.ws/3Yur2To
Abu Dhabi's Adnoc Boosts Oil Trading With Fujairah Refinery Deal; It is in talks to expand refinery tolling deal with Montfort; Adnoc has already processed one oil cargo and is seeking more
Anthony Di Paola - Bloomberg
The biggest oil company in the United Arab Emirates is expanding its fledgling trading business with a deal to supply crude and take products from a refinery in the country's coastal region of Fujairah. Abu Dhabi National Oil Co. has had at least one cargo of crude processed at the refinery that's partly owned by trader Montfort Group, according to people with knowledge of the situation. Adnoc is in talks to extend the agreement to more shipments, said the people, who asked not to be identified discussing business details.
/jlne.ws/3Uu2xEB
Lithium Miner Pilbara Minerals to Halt Australian Plant's Output
Paul-Alain Hunt - Bloomberg
/jlne.ws/48wB9vx
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Jefferies Seeks to Claw Back Ex-Fund Manager's Pay in Fraud Suit
Ava Benny-Morrison, Carmen Arroyo and Jonathan Randles - Bloomberg
A Jefferies Financial Group hedge fund is attempting to claw back millions in compensation from a former portfolio manager it claims poured more than $100 million in a fraudulent scheme. Jefferies' 352 Capital on Monday filed a revised complaint against Jordan Chirico in Manhattan federal court, expanding on its allegations that, when he purchased bonds issued by WaterStation Management, he knew the Seattle-based water vending machine company was engaged in a fraud.
/jlne.ws/3NL3uVy
Schwab to Expand 24-Hour Trading With Individual Stocks, More ETFs
Hannah Miao - The Wall Street Journal
Charles Schwab said it is expanding 24-hour weekday trading, in the latest industry move toward around-the-clock investing. The brokerage plans to add individual stocks in the S&P 500 and Nasdaq-100, and hundreds of additional exchange-traded funds, to its overnight session. Schwab said it will begin rolling out the expanded overnight access to a small group of customers, with full client access expected in 2025.
/jlne.ws/3NNhrC8
US broker Schwab to roll out broader overnight trading platform
Suzanne McGee - Reuters
Charles Schwab Corp plans to expand the availability of 24-hour trading to include all stocks in major U.S. indexes as well as hundreds of ETFs beginning in about two weeks, the brokerage said in a statement on Wednesday. The move comes amid burgeoning interest in extended hours trading from retail investors that is driving some brokers and exchanges to expand their offerings. Last Friday, the New York Stock Exchange, a division of Intercontinental Exchange, said it would file for permission to extend its trading hours to 22 hours each business day.
/jlne.ws/3YsfHTL
JPMorgan Reclaims Top Spot From Bank of America in Analyst Poll
Lu Wang and Alexandra Semenova - Bloomberg
JPMorgan Chase & Co. was voted the best US sell-side research firm in a widely followed investor survey, reclaiming the top spot that bank occupied for most of the past decade. Bank of America Corp., which ended JPMorgan's seven-year lead in 2023, slipped to the second place in the latest survey by Extel, formally known as Institutional Investor. Morgan Stanley was ranked third, followed by Evercore ISI and Jefferies Financial Group Inc.
/jlne.ws/40w0d3I
UBS Profit Outstrips Expectations as CEO Warns on Looming Risks
Noele Illien and Allegra Catelli - Bloomberg
UBS Group AG posted results that beat expectations across the board, as risks from regulation to market gyrations appear on the horizon. Shares in the Zurich-based bank briefly rose to the highest since May 2008 before erasing gains. Net income came in at $1.4 billion, almost double analyst estimates, aided by trading and progress on controlling costs. The lender has now delivered three profitable quarters after sustaining losses linked to the acquisition last year.
/jlne.ws/4ea7c5A
UBS Wins $282 Million Cut in Damages Bill to Georgian Tycoon; Swiss bank inherited long-running Credit Suisse legal battles;' Ivanishvili fell victim to rogue banker who robbed clients
Hugo Miller - Bloomberg
UBS Group AG says its won a $282 million reduction in damages it owes to Bidzina Ivanishvili, the controversial Georgian tycoon and political leader who fell victim to a massive embezzlement scheme by a rogue banker at Credit Suisse. Singapore's International Commercial Court ordered the damages previously set at $743 million to be cut to $461 million, UBS said in a note accompanying its third-quarter results on Wednesday. The court's revised award to Ivanishvili includes interest and costs, it said.
/jlne.ws/4e7rM6R
BlackRock, Vanguard Stakes in Banks Draw Labor Union Critics
Katanga Johnson - Bloomberg
Consumer advocacy groups and labor unions are lining up to support plans by the FDIC to step up scrutiny of stakes in US banks held by money managers such as BlackRock Inc. and Vanguard Group Inc., citing the danger of too much concentration. The groups made their case in a letter sent to the Federal Deposit Insurance Corp. late Tuesday that warned of the investment firms' growing influence over corporate decisions, including at banks. They also called on officials to address potential threats to financial stability posed by massive asset managers.
/jlne.ws/4e34Gy1
HSBC profits jump as bank set for major shakeup
Joao da Silva - BBC News
Between July and September, HSBC's pre-tax profits reached $8.5bn HSBC has seen its quarterly profits jump by 10% as the UK-based banking giant embarks on one of the biggest shakeups in its 159-year history. The firm said its pre-tax profits rose to $8.5bn (£6.6bn) in the three months to the end of September, beating analysts' expectations. It comes just days after HSBC's new boss announced a major overhaul of the company. The firm will be divided geographically into eastern and western markets amid increasing geopolitical tensions and a need to cut costs. HSBC's new chief executive, Georges Elhedery, said that implementation of the plans will "begin immediately" and promised to share more details alongside the bank's full-year results in February.
/jlne.ws/3NMwwnO
BlackRock Talks to Buy Private-Credit Firm HPS Advance
Dinesh Nair, Swetha Gopinath, Aaron Kirchfeld and Davide Scigliuzzo - Bloomberg
/jlne.ws/48qE7Si
Apollo Founder Harris Says Big PE Firms Have Left Alpha Behind; 26North Partners raised $23 billion over a two-year period; Harris says poor private equity returns have benefited 26North
Allison McNeely - Bloomberg
/jlne.ws/3NMrRSy
Equal-weight funds tipped to be new European battle ground; The popular alternative to capitalisation-weighted products gathered record net flows in September, says Morningstar
Theo Andrew - Financial Times
/jlne.ws/3NHqXa6
Columbia Threadneedle closes standalone UK small stocks unit; The company's move coincides with a Budget that could make Aim stocks less attractive
Emma Dunkley - Financial Times
/jlne.ws/3Uq4jqv
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | UK visa process for AI experts should be streamlined, says government adviser; Recommendations from Matt Clifford on boosting the tech industry also include special zones for data centres
Anna Gross - Financial Times
The UK should reduce the cost and complexity of visas for people with expertise in artificial intelligence and create special zones for data centres, a government-commissioned report is expected to say. The "AI Opportunities Action Plan" by venture capitalist Matt Clifford, submitted to the government last month and expected to be published in November, sets out dozens of recommendations on how to make Britain more attractive for companies developing machine learning technologies.
/jlne.ws/3YJbc8Q
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Can apple cider vinegar really do wonders for your health? Several studies have shown apple cider vinegar can lower blood sugar levels and slightly improve cholesterol, but there are caveats.
Anahad O'Connor - The Washington Post
Apple cider vinegar has long had a reputation as an elixir that can do wonders for your health. To some extent, its reputation is deserved. Many studies have shown that apple cider vinegar can lower blood sugar levels and slightly improve cholesterol levels. A few studies have shown that it might help you lose weight. And apple cider vinegar typically contains health-promoting bacteria, known as probiotics, that according to studies can nourish your gut microbiome.
/jlne.ws/3A5rFuI
Deaths of older people from climate extremes soar, annual review shows
Michael Peel - Financial Times
Climate change-related hazards have caused death rates among older people to soar and a spike in the risk of infectious diseases as a result of heavy rainfall, an annual audit of health threats from global warming found. The review by more than 100 scientists published in The Lancet underscores how climate change threatens both survival and quality of life. Low and middle-income countries are hit hardest, it said, as each fraction of a degree rise in global mean temperatures compounds the problems.
/jlne.ws/3C2e5sl
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Japan's No. 2 Pension Fund Aims to Double Alternative Assets; PAL seeks to make alternative assets close to 5% of main fund; Fund managing $229 billion holds real estate, private equity
Satoshi Shizume and Nao Sano - Bloomberg
Japan's second-biggest pension fund aims to double its holdings of alternative assets such as real estate and private equity to boost returns. Pension Fund Association for Local Government Officials, known as PAL, is targeting alternative investments rising to near 5% of one of its main funds from 2.1% as of March, said Satoshi Uemura, an executive director at the organization, in an interview.
/jlne.ws/40ncJTe
Brazil farmers, government slam Danone for cutting out Brazilian soy
Reuters
Brazilian soybean producers on Tuesday said there is good reason for products of Danone to be boycotted after the French dairy giant said it would stop sourcing soy from Brazil, while the Brazilian government criticized "unreasonable" moves by European companies. Danone's finance chief told Reuters last week that the company was instead buying soybeans from countries in Asia, ahead of a European Union rule requiring companies to prove they are not sourcing from deforested land.
/jlne.ws/3C2UKaC
UK to End Preferential Tax Regime for Ultra-Rich Foreigners
Jennifer Surane and Katherine Griffiths - Bloomberg
The UK will end a system that offered tax breaks to the country's wealthiest foreigners in a move that Chancellor of the Exchequer Rachel Reeves said would raise £12.7 billion ($16.5 billion) over the next five years. Non-doms foreign residents who span City of London bankers to multibillionaires currently don't pay UK taxes on their overseas earnings for as long as 15 years. Instead, the country will introduce a residence-based program, Reeves said the budget Wednesday, her first since the Labour party took power. The new regime will offer competitive arrangements to wealthy foreigners coming to the UK on a temporary basis, she said. The last Conservative government had also proposed replacing the current system.
/jlne.ws/3NKMLl3
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